Japan Steel Consumption for Shipbuilding to Keep High in F2006

Steel products consumption for shipbuilding and marine structure increased by 16.4% to 4.17 million tonnes in fiscal 2005 ended March 2006 from the previous year at Japanese 20 shipbuilders belonging to Shipbuilders’ Association of Japan, 4.1183 million tonnes of which was ordinary steels and 51,400 tonnes special steels, announced the association. The increase reflected high-level construction volume of new ships. The association prospects the consumption would become to about 4.1 million tonnes in fiscal 2006, 4.042 million tonnes of which be ordinary steels and 54,300 tonnes special steels, which could maintain the level at over 4 million tonnes for 2 straight years.In fiscal 2005, steel plate represented 3.5068 million tonnes of ordinary steel consumption for shipbuilding and marine structure, shape steel 326,300 tonnes, steel pipe 98,600 tonnes, steel bar 182,200 tonnes and the others 4,300 tonnes, each of which increased by about 15% from fiscal 2004. High-tension steel represented 3,200 tonnes of special steel consumption, low-temperature steel 33,900 tonnes and the others 14,200 tonnes.Shipbuilding demand maintains firm with active marine transportation thanks to the increase of marine transit with the background of Chinese economy expansion. Japanese shipbuilders hold backlogs for over 3 years and keep high operation. However, profitability is not good among Japanese shipbuilders for the moment when current shipbuilding and delivery are for past orders at relatively low prices.